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Hey everybody, Dave Bartosiak with Trending Stocks on Zacks.com. Everybody is always looking for the next big thing. The next Amazon, the next Facebook, the next Backstreet Boys. When it comes to emerging market stocks, we hear the parallels often. That’s because, to tell the truth, we really have no idea what these companies are really up to. Like, Bidu is the eBay of China. How do I know? Because some dude said so. I don’t speak Mandarin. I haven’t been to the Great Wall. I really have no idea, I just gotta take your word for it.
Here’s another parallel for you, Jumia (JMIA - Free Report) . Apparently, Jumia is trying to become the Amazon(AMZN - Free Report) of Africa. That could be because they, like Amazon in its early days, don’t make any money. Founded in 2012, Jumia is the leading pan-African eCommerce platform with about 80,000 sellers and 4 million active customers across 14 countries. Similar to Chinese giant Alibaba (BABA - Free Report) , Jumia also has its own payment service, as well as a GrubHub like food delivery platform. Even though its target market is Africa, Jumia is actually headquartered in Dubai and has its central technology office in Portugal.
Its Q3 report pointed out some short-comings for the company. Top line metrics softened across the board but the company was attempting a shift towards their higher-margin categories. For the current year, revenues contracted at 7.69%, something you never saw at Amazon. Next year, things are expected to pick-up with revenue growth at 25.98%. Even though that top-line number this year was pretty terrible, earnings growth still remained. Current year growth is forecast to come in at 40.18% while next year is expected to grow at 14.22%. To be fair, calling this growth is a bit of a misnomer. It’s a smaller loss that is forecast. Current year EPS estimates call for a $2.04 loss while next year is slated for a $1.75 loss.
With the stock’s price in the high $30s, the current market cap sits up at $3.4 billion. That puts its Price-to-sales ratio at 35.7x. To put that in perspective, Amazon trades at 4.5x sales. Alibaba is up at 8x.
Every time you share this video, Jumia delivers a fake Gucci jump suit to a wannabe R&B singer in Nigeria. Follow the author, subscribe to the YouTube channel, and twitter @bartosiastics. Don’t forget to check out Zacks.com/promo for this week’s deal on Stocks Under $10. We will catch you next time on Trending Stocks.
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While today's Zacks Rank #1 new additions are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for all Zacks trades >>
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Is Jumia the Next Amazon Stock to Buy?
Hey everybody, Dave Bartosiak with Trending Stocks on Zacks.com. Everybody is always looking for the next big thing. The next Amazon, the next Facebook, the next Backstreet Boys. When it comes to emerging market stocks, we hear the parallels often. That’s because, to tell the truth, we really have no idea what these companies are really up to. Like, Bidu is the eBay of China. How do I know? Because some dude said so. I don’t speak Mandarin. I haven’t been to the Great Wall. I really have no idea, I just gotta take your word for it.
Here’s another parallel for you, Jumia (JMIA - Free Report) . Apparently, Jumia is trying to become the Amazon (AMZN - Free Report) of Africa. That could be because they, like Amazon in its early days, don’t make any money. Founded in 2012, Jumia is the leading pan-African eCommerce platform with about 80,000 sellers and 4 million active customers across 14 countries. Similar to Chinese giant Alibaba (BABA - Free Report) , Jumia also has its own payment service, as well as a GrubHub like food delivery platform. Even though its target market is Africa, Jumia is actually headquartered in Dubai and has its central technology office in Portugal.
Its Q3 report pointed out some short-comings for the company. Top line metrics softened across the board but the company was attempting a shift towards their higher-margin categories. For the current year, revenues contracted at 7.69%, something you never saw at Amazon. Next year, things are expected to pick-up with revenue growth at 25.98%. Even though that top-line number this year was pretty terrible, earnings growth still remained. Current year growth is forecast to come in at 40.18% while next year is expected to grow at 14.22%. To be fair, calling this growth is a bit of a misnomer. It’s a smaller loss that is forecast. Current year EPS estimates call for a $2.04 loss while next year is slated for a $1.75 loss.
JUMIA TECHADR Price and Consensus
JUMIA TECHADR price-consensus-chart | JUMIA TECHADR Quote
With the stock’s price in the high $30s, the current market cap sits up at $3.4 billion. That puts its Price-to-sales ratio at 35.7x. To put that in perspective, Amazon trades at 4.5x sales. Alibaba is up at 8x.
Every time you share this video, Jumia delivers a fake Gucci jump suit to a wannabe R&B singer in Nigeria. Follow the author, subscribe to the YouTube channel, and twitter @bartosiastics. Don’t forget to check out Zacks.com/promo for this week’s deal on Stocks Under $10. We will catch you next time on Trending Stocks.
Now See All Our Private Trades
While today's Zacks Rank #1 new additions are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for all Zacks trades >>